LPG Crunch Hits Restaurants In India As War In West Asia Disrupts Supply

Restaurants and small eateries across several Indian cities are warning of possible shutdowns within days as a disruption in commercial liquefied petroleum gas (LPG) supply, linked to the ongoing conflict in West Asia, has left many establishments struggling to secure cooking fuel.

Industry bodies in cities including Mumbai, Bengaluru, Chennai, Hyderabad, Chandigarh and states like Rajasthan say the supply of commercial LPG cylinders has slowed sharply over the past few days, forcing restaurants to ration gas usage and in some cases suspend operations temporarily.

Restaurants Warn Of Shutdowns

The crisis has hit India’s hospitality sector particularly hard because hotels, restaurants and street food vendors rely heavily on commercial LPG cylinders for cooking. Sujit, owner of Marathi Tadka hotel in Mumbai’s Dadar said that currently they are facing LPG shortage because of the conflict, which is affecting the business. “The vendors who used to supply us with LPG gas are now saying that it is not available. How will we run our business in this situation? We are discussing it, but we request the government to come up with some solutions,” Sujit said.

In Mumbai, the Indian Hotels and Restaurants Association said the shortage has already forced some businesses to close temporarily. Around 20 per cent of restaurants in the city have reportedly shut operations due to difficulties in obtaining commercial cylinders.

“Despite being a basic operational requirement for restaurants and hotels, commercial cylinders are becoming increasingly difficult to obtain,” the association said in a statement, adding that the shortage is creating “significant operational challenges” for establishments across the hospitality sector. Restaurant owners say refill waiting periods have stretched to several days, leaving many kitchens with only limited fuel reserves.

In Chandigarh, according to PTI, there were reports of hoarding and black marketing of LPG cylinders in. Hotel associations in southern India were among the first to flag the crisis.

The Bengaluru Hotels Association, in a statement, warned that restaurants could be forced to halt operations if the supply disruption continues. In a statement, the association said: “Since the gas supply has stopped, the hotels will be closed from tomorrow.” The body added that the shutdown could affect thousands of people who depend on restaurants for daily meals, including students, hospital staff and office workers.

In Chennai, the Tamil Nadu Hotels Association, wrote to the Ministry of Petroleum and Natural Gas (MoPNG), warning that the situation has become critical for the food service industry, which supplies meals to hospitals, IT parks and hostels. A similar situation is seen in Hyderabad as well where several hotels and hostels are looking to shut down.

In Rajasthan, reports showed that fresh booking for commercial LPG cylinders is hauled due to the shortage.

The LPG Crisis

MoPNG has acknowledged the supply constraints but said steps are being taken to stabilise LPG availability. They had earlier said that LPG and other gas supplies in India are in control.

In a statement on X, the ministry said that oil refineries have been instructed to increase LPG production and divert additional output for domestic use.

“In light of current geopolitical disruptions to fuel supply and constraints on supply of LPG, the ministry has issued orders to oil refineries for higher LPG production,” the ministry said. Officials added that the government is prioritising LPG supplies to households to ensure cooking fuel availability for residential consumers.

To address complaints from restaurants and other commercial users, the ministry has also set up a committee of oil marketing company executives to review requests for LPG allocation to non-domestic sectors.

Spike In Cylinder Prices

The crisis has also pushed up cooking gas prices. The government recently increased the price of domestic LPG cylinders by Rs 60 and commercial cylinders by Rs 115, citing disruptions to energy supply routes in the Middle East.

The LPG shortage is due to the ongoing military escalation in West Asia involving Iran, Israel and the United States. The conflict has disrupted energy shipping routes in the Gulf, particularly around the Strait of Hormuz, through which a large portion of global oil and gas shipments pass. India relies heavily on imports to meet its LPG demand: about 62 per cent of the country’s LPG requirement is imported, much of it from Gulf nations such as Saudi Arabia and Qatar. With tanker traffic disrupted, imports tightening and the closure of the Strait of Hormuz, the government has diverted available supplies toward domestic households, leaving commercial sectors such as restaurants facing shortages.